Call Toll Free 1-866-574-5115

CALIFORNIA RESERVE STUDIES


Joel has sixteen years of experience in matters related to reserve studies, inspection, consulting, valuation and budgeting. Joel is the Owner of Reserve Data Analysis, Inc.


Joel Tax has earned the distinguished Professional Reserve Analyst ​(PRA) designation from the APRA of which there are currently only 71 nationwide. This designation is given to those reserve study professionals who adhere to the highest standards in the industry. Maintaining this designation requires continuing education and peer review standards that elevate the reserve study profession.


Each day my person goal is to make a difference; sometimes small and other times large. Completing reserve and replacement studies gives me the opportunity to do just that as the communities and organizations seeking one of our studies have questions and concerns regarding their own funding plans. People are often in the dark with matters related to costs and component useful life's which are essential to understand before a long term funding goal can be calculated and implemented. 


It's an important and fulfilling opportunity for me to contribute to each of these communities & organizations in positive and beneficial way. Commonly our studies are utilized by HOA's, condominium communities, museums, nonprofit organizations, schools, daycares, marinas, places of worship, commercial buildings, etc.



California Reserve Study Requirements

California Civil Code Sections 1365 and 1365.5


On a quarterly basis common interest development boards of directors must review reserve accounts and compare reserves to the previous year. At least once every three years, boards must conduct a competent and diligent visual inspection of the property that the association is obligated to repair, replace restore or maintain as part of a study of the reserve account requirements. The board is to annually review this study to consider and implement necessary adjustments to the board’s analysis of the reserve account requirements. See more detailed information in California Civil Code Sections 1365 and 1365.5


Civil Code §5550. Reserve Study Requirements.
[Old: Civ. Code §1365.5(e)(1)-(5)]


(a) At least once every three years, the board shall cause to be conducted a reasonably competent and diligent visual inspection of the accessible areas of the major components that the association is obligated to repair, replace, restore, or maintain as part of a study of the reserve account requirements of the common interest development, if the current replacement value of the major components is equal to or greater than one-half of the gross budget of the association, excluding the association’s reserve account for that period. The board shall review this study, or cause it to be reviewed, annually and shall consider and implement necessary adjustments to the board’s analysis of the reserve account requirements as a result of that review.

(b) The reserve study​ required by this section shall at a minimum include:

(1) Identification of the major components that the association is obligated to repair, replace, restore, or maintain that, as of the date of the study, have a remaining useful life of less than 30 years.

(2) Identification of the probable remaining useful life of the components identified in paragraph (1) as of the date of the study.

(3) An estimate of the cost of repair, replacement, restoration, or maintenance of the components identified in paragraph (1).

(4) An estimate of the total annual contribution necessary to defray the cost to repair, replace, restore, or maintain the components identified in paragraph (1) during and at the end of their useful life, after subtracting total reserve funds as of the date of the study.

(5) A reserve funding plan that indicates how the association plans to fund the contribution identified in paragraph (4) to meet the association’s obligation for the repair and replacement of all major components with an expected remaining life of 30 years or less, not including those components that the board has determined will not be replaced or repaired.

(Added by Stats. 2012, Ch. 180, Sec. 2. Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)